Recently, affected by the price increase of bulk commodities such as crude oil, the textile and chemical fiber raw material market has been booming. Whether it is low-elastic yarn, yarn or spandex, the price has risen across the board, especially spandex, and there has even been a case of “hard to find a box” “Situation, under this background, how will the upstream and downstream markets of Keqiao textile industry react?
In the past few days, I have visited relevant companies and found that as raw materials have skyrocketed, the prices of gray cloth and fabrics have also increased. The prices of raw materials are unstable. Many companies have complained that it is difficult to do business. Most companies They are in a wait-and-see state, with orders pressing the “pause button”. However, some companies have actively sought ways to reduce risks by linking upstream and downstream methods through “locking orders”, “down payments” and “quoting the current price”.
The price of spandex has soared by more than 50%. Pay first and then queue up to get the goods.
“Spandex has gone up too much. Soon!” On the morning of March 4, when arriving at the China Textile City International Fabric Purchasing Center, Zheng Zhiguang, general manager of Shaoxing Xinlinglong Textile Co., Ltd., said that the current price of spandex has risen to more than 90,000 yuan per ton. Compared with the price after the holiday, The price is 50,000 to 60,000 yuan per ton, an increase of more than 50%. If compared with the more than 30,000 yuan during the National Day last year, it has more than doubled.
“Xinlinglong Textile” mainly sells functional yoga clothing fabrics. In order to maintain good tightness in yoga clothes, the company’s fabrics contain a relatively large proportion of spandex, generally 25-35%. This increase in spandex prices has had a significant impact on the company. The spandex used in the company’s fabrics is purchased by itself. When Zheng Zhiguang opens his eyes every day, the first thing he does is to check the price of spandex on his mobile phone.
He said that the current price of spandex can be said to be at a high level in recent years. Not only is the price high, but it is also out of stock. “To get spandex now, you have to pay the full price first, and then wait in line for the goods. If you still can’t get the full amount, you can only arrange part of it.” Zheng Zhiguang revealed that in the past, not only could the payment be settled monthly, but you could also get as much goods as you wanted. .
Even if Lucky Row arrived, he was still worried about the quality of the spandex. The payment for the goods has been paid, but the goods are in short supply. In such a seller’s market, for companies like them with relatively high product quality requirements, the company may face greater product quality risks when acquiring goods.
Polyester low-elastic yarn generally rose by 15-20% after the holiday and has not yet reached the highest level in history
According to market conditions, From March 1st to 4th, the price of polyester DTY (low elastic yarn) has stabilized and has remained at 9,350 yuan per ton for 4 consecutive days. Compared with February 18, it was 8,350 yuan per ton, which has increased by 1,000 yuan.
“Polyester low elasticity yarn and yarn have been rising since the holiday, with a basic increase of 15-20%.” Mao Yiming, Office Director of Zhejiang Xingfa Chemical Fiber Group Co., Ltd. He said that due to the high unit price of yarn, the price has increased by about two to three thousand yuan per ton, and the current price is temporarily stable.
“Xingfa Group” has a sales department in the Qianqing Textile Raw Material Market of China Textile City. It has been operating in the raw material market for many years and is very familiar with market changes. Very sensitive. Mao Yiming said that some time ago, as the prices of upstream bulk raw materials increased, the prices of chemical fiber raw materials were changing every day. When they rose the fastest, they rose three times a day, opening once in the morning, once in the afternoon, and once in the evening.
From rising three times a day to now being stable for four consecutive days, will the price of polyester low stretch yarns continue to rise in the future? “From a price point of view, the current price of polyester low-elastic yarn has not reached a historical high.” Mao Yiming said that in his impression, there were high prices of 15,000 to 6,000 yuan per ton. As international crude oil prices continue to rise in the later period, it is expected that Polyester low-elastic yarn still has room for growth.
In the Qianqing raw material market, many small and medium-sized raw material traders reported that the price increase of raw materials is not a good thing for them. It is difficult to report the price of raw materials recently. The price reported today will be changed tomorrow. Stable prices make it harder to do business.
Fabric prices are rising, and downstream companies are mostly waiting and watching
Zhejiang Fantesi International Trade Co., Ltd. is the leader in textile foreign trade in our region Enterprise, foreign trade exports have been at the forefront of the region for many years. The company has a rich range of fabric products and its products are exported overseas. In terms of grasping market conditions, the company’s chairman Fu Guangyi has his own unique insights.
When it comes to the crazy price increases in the current raw material market, Fu Guangyi seems relatively indifferent. He believes that the market has its own mediation function, and the ups and downs of raw material prices are normal phenomena. There will always be a wave of price increases. It will pass. At present, the company’s fabric prices follow the market trends. If a new order comes in, his response strategy is also very simple. If there is a profit, he will take it. If there is no profit, he will wait and wait and see what happens.
In the interview, it was found that there are many textile companies like “Vantes” with a wait-and-see mentality. On the one hand, textile companies have partially stocked up before the year. On the other hand, although gray fabric factories and dyeing factories have resumed work and production, most companies have not fully operated their production capacity. For some orders that are not urgently delivered, everyone is holding the ” Take it easy” mentality.
Recently, the price of yoga clothing fabrics of “Xinlinglong Textile” has also increased, with an increase of between 15-20%. “If we don’t increase the price, we will lose money.” Zheng Zhiguang said that not only himself is waiting and watching, but also downstream clothing customers are waiting and watching. Originally, before the Spring Festival, foreign customers had large orders worth several million yuan and were preparing to place them after the holiday, but recently…�The price is unstable and orders are suspended. “Fortunately, all the orders placed before the Spring Festival were delivered before the Spring Festival. Now we don’t dare to reserve raw materials. We are prepared to wait and see for a few more weeks to see if the price can be stable. As long as the price is stable, I believe the orders will still come in. .”
“Lock order” and “down payment” upstream and downstream work together to reduce risks
In this article Amid the surge in raw material prices, some gray fabric factories have a more positive attitude than fabric traders because they need to support workers. In addition to factories that stocked a lot of raw materials before the Spring Festival, they were not greatly affected. Some gray fabric factories that did not stock or stocked little were actively linking upstream and downstream to try to reduce the price of goods through “locking orders”, “down payments” and “quoting the same day price”. Risks arising from price fluctuations.
In the interview, Lin Longqing, general manager of Zhejiang Shuailong Knitting Co., Ltd., said that recently some chemical fiber companies and gray fabric companies have joined hands to adopt a “lock order” method to stabilize raw material prices. The so-called “lock order” means that the gray fabric company and the chemical fiber company agree to pay the price first, lock in the price, and then deliver the goods within the agreed time according to the needs of the gray fabric company. If the goods are not picked up after the time, the gray fabric company needs to pay warehouse management fees.
In addition, we learned that, considering the capital turnover of gray fabric companies, some chemical fiber companies do not require full payment in terms of payment methods and have launched a “down payment” model while “locking orders” , further alleviating the financial pressure on gray fabric enterprises. At the same time, in response to the “difficulty in quoting” reported by most companies, more gray fabric companies have adopted the method of “quoting the same day price” and immediately purchasing raw materials after the quotation is successful. With the skyrocketing price of raw materials, for gray fabric companies, time is money. </p
